NEW YORK, Nov. 13, 2013
/PRNewswire/ -- Glenview Capital Management LLC, which owns
14.5% of the common stock of Health Management Associates, Inc.
(NYSE: HMA) through affiliated investment funds, today issued the
following statement:
"In light of our leadership role to Revitalize HMA and given our
stance as HMA's largest shareholder, Glenview offers the following
statement regarding HMA's Q3 earnings, the Board's review of the
pending Community Health System, Inc. (NYSE: CYH) ("CHS")
transaction, the issuance of fairness opinions by UBS Securities
LLC and Lazard Freres & Co. LLC and CHS's reaffirmation of its
commitment to the transaction:
- We are disappointed to learn of the weakness at HMA as
reflected in their Q3 results, which we believe reflects on the
stewardship of the old Board and prior senior management.
However, we are gratified that the new Board and a refocused and
reconstituted management team are actively stabilizing and
addressing financial and operating performance.
- We appreciate the thorough and comprehensive review of the CHS
proposal conducted by the new Board and the work done by Alvarez
& Marsal, UBS and Lazard in conjunction with the issuance of
fairness opinions. Independent third party verification of
fairness serves all shareholders' interests.
- Based upon this comprehensive review and transparent disclosure
of financial and operating conditions that is being made today,
Glenview confirms its intention to vote its shares in favor of the
CHS proposal, which we believe represents full and fair value for
HMA.
- As CHS's largest shareholder, we believe in the compelling
strategic rationale driving the transaction and believe CHS is
acquiring high quality assets whose fundamental performance will be
significantly enhanced through the combined efforts of HMA and CHS
leaders. CHS is well positioned to apply its best practices
in core operational areas like physician relationships and
recruiting, vendor contracting and clinical management to further
stabilize and improve HMA's quality, service delivery and financial
performance.
- Finally, this experience reinforces the importance of
shareholder engagement. It was only several weeks after
Glenview filed its Form 13D on May 6,
2013 that the old Board of HMA retained an investment bank
to assist in a review of strategic alternatives, and it was only
after a broad and diverse chorus of voices indicated their
dissatisfaction with its lack of leadership that the old Board
concluded to accept the CHS proposal. All shareholders
benefited from stronger shareholder engagement.
- Glenview thanks the men and women of HMA and of the new Board
for their efforts to move HMA forward in preparation for embarking
on a new chapter of quality, performance and growth with CHS."
About Glenview Capital Management
Glenview Capital Management is a private investment management
firm with more than $7 billion of
assets under management. The firm was founded in 2000 and manages
capital for qualified investors through a series of private
investment funds, and has offices in New
York and London. Glenview
is focused on delivering attractive absolute returns through an
intense focus on deep, fundamental research and individual security
selection.
Cautionary Statement Regarding Forward-Looking
Statements
This statement may include "forward-looking statements" that
reflect current views of future events. Statements that include the
words "expect," "intend," "plan," "believe," "project,"
"anticipate," "will," "may," "would" and similar statements of a
future or forward-looking nature are often used to identify
forward-looking statements. Similarly, statements that describe our
objectives, plans or goals are forward-looking. Glenview's
forward-looking statements are based on its current intent, belief,
expectations, estimates and projections regarding the Company and
projections regarding the industry in which it operates. These
statements are not guarantees of future performance and involve
risks, uncertainties, assumptions and other factors that are
difficult to predict and that could cause actual results to differ
materially. Accordingly, you should not rely upon forward-looking
statements as a prediction of actual results and actual results may
vary materially from what is expressed in or indicated by the
forward-looking statements. Except to the extent required by
applicable law, no person undertakes any obligation to update
publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
SOURCE Glenview Capital Management LLC